Mukesh Ambani to pump in Rs 30,000 crore more into Reliance Jio
Mukesh Ambani had invested $25 billion (nearly Rs 1.66 lakh crore) to launch Reliance Jio last year
Raking in millions of customers with its free internet and calls, Reliance Jio has been making records. Its owner, Mukesh Ambani, is now reportedly set to invest additional Rs 30,000 crore in the company.
He had invested $25 billion (nearly Rs 1.66 lakh crore) to launch Reliance Jio last year, and this additional investment is set to boost its network coverage, a report by Bloomberg said.
Reportedly, Reliance Industries is in the works to raise $4.4 billion (or nearly Rs 30,000 crore) through a rights offer to improve its network capacity.
This comes at the time when Jio is the target of its rival companies who have accused it of engaging in anti-competitive practices to widen its subscriber base. One point of the case is that Reliance's launch offer doled out freebies for three months to garner new customers. This was later extended to March 31, raising a red flag with the rivals. According to the current rules, promotional offers can only go on for 90 days. Jio, however, gave a statement saying that its Happy New Year offer was completely different from its launch offer, and thus didn't break any rules.
Jio's entry has led to leading incumbent operators like Airtel, Vodafone etc to offer free voice calls and data schemes.
Reliance Industries would be announcing its third-quarter results later in the day. All eyes will be on the company's statement on Jio and its plans here on.